Seeking Alpha

Pengrowth +2.9% after announcing 2014 $715M capex budget, guidance

  • Pengrowth Energy (PGH +2.9%) says it plans to spend $715M in 2014, with $365M earmarked for its 12.5K bbl/day thermal in situ heavy oil project at Lindbergh, Alberta, and $350M on its non-thermal assets, primarily its Cardium light oil play.
  • CEO Derek Evans says its growth plans include rail: The Lindbergh location means the steam-assisted gravity drainage project will be able to use pipeline or truck-and-rail options, and PGH can truck the crude to a rail loading terminal for $5/bbl.
  • PGH expects production to fall to 71K-73K boe/day in 2014 from 75K-77K average during Q4.
  • Capital spending of $700M in 2013 finished below the $770M budgeted.
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